Article IX

Section 1

 

NOTES OF DECISIONS

 

In general

 

      Legislative assignment of administrative and fiscal responsibility for ad valorem tax assessment and collection to the counties is valid as a matter of dominant state concern. City of Banks v. Washington County, 29 Or App 495, 564 P2d 720 (1977)

 

      This section does not prohibit the legislature from passing an enabling act for the imposition of taxes by a municipal corporation. Reilley v. Secretary of State, 41 Or App 293, 598 P2d 323 (1979), aff’d 288 Or 573, 607 P2d 162 (1980)

 

      This section is not applicable to taxes imposed by municipal corporation because it applies only to taxes that operate throughout the state. Kane v. Tri-County Metro. Transportation District, 65 Or App 55, 670 P2d 178 (1983), Sup Ct review denied

 

Uniformity of operation

 

      Without a valid foundation for different assessments, assessment of part of land of shopping center at dollar rate per square foot different from remaining land of center is violation of uniformity clauses of Oregon Constitution. Henshaw v. Dept. of Rev., 5 OTR 263 (1973)

 

      Uniformity of assessment refers only to classification and methodology used on similar properties, not uniformity in result of valuation. Chart Development Corp. v. Dept. of Revenue, 16 OTR 9 (2001)

 

Exemptions

 

      Classification of Armed Forces retirees separately from other federal retirees and restriction of exclusion under [former] ORS 316.067 to those persons over 65 years age was not unconstitutional discrimination against retired servicemen under 65. Huckaba v. Dept. of Rev., 7 OTR 81 (1977), aff’d 281 Or 23, 573 P2d 305 (1978)

 

Validity of specific laws

 

      The refund procedures outlined in ORS 311.806 (3) treat all taxing districts similarly situated alike, and are not violative of this section. Sch. Dist. 12, Wasco County v. Wasco County, 5 OTR 287 (1973), aff’d 270 Or 622, 529 P2d 386 (1974)

 

ATTY. GEN. OPINIONS: Validity of tax levied on utility operations in part of county and recovery from customers in that area only, (1972) Vol 36, p 131; urban renewal financing by taxes, (1974) Vol 36, p 1005; Oregon Medical Insurance Board of Directors may not assess members of Medical Insurance Pool for purpose of covering losses from claims by insureds and has authority only to assess members $150,000 for start-up costs, (1989) Vol 46, p 155; Oregon Medical Insurance Board of Directors may accept voluntary contributions, (1989) Vol 46, p 155; application of Article XI, section 11b of Oregon Constitution to uniformity requirements of this provision, (1990) Vol 46, p 388; taxation of public employee pension plans, (1999) Vol 49, p 188

 

LAW REVIEW CITATIONS: 67 OLR 113 (1988); 70 OLR 257 (1991); 40 WLR 225 (2004)

 

Art. IX, Section 1a

 

NOTES OF DECISIONS

 

      Voters of home-rule counties have the right to referendum on all ordinances regulating taxation; that right may not be defeated by the declaration of an emergency in the enactment of such legislation. Multnomah County v. Mittleman, 275 Or 545, 552 P2d 242 (1976)

 

      Prohibition against attaching emergency clause to taxation or exemption act applies to city ordinances. Advance Resorts of America, Inc. v. City of Wheeler, 141 Or App 166, 917 P2d 61 (1996), Sup Ct review denied

 

      “Poll or head tax” requires that tax must be assessed per capita and must be for uniform, fixed amount; because Arts Tax exemptions are predicated on level and source of individual and household income, tax is not imposed per capita and therefore is not a “poll or head tax” in violation of this section. Wittemyer v. City of Portland, 278 Or App 746, 377 P3d 589 (2016)

 

ATTY. GEN. OPINIONS: Concerning referendums in home rule counties, (1976) Vol 38, p 387

 

LAW REVIEW CITATIONS: 67 OLR 113 (1988)

 

Art. IX, Section 1c

 

NOTES OF DECISIONS

 

      This section allows local government to use property tax increment financing to pay for urban renewal indebtedness, but does not authorize agencies to incur bonded indebtedness. City of Portland v. Smith, 314 Or 178, 838 P2d 568 (1992)

 

ATTY. GEN. OPINIONS: Application of Ballot Measure 47 (Oregon Constitution Article XI, section 11g) to investment bonds, (1996) Vol 48, p 67

 

Art. IX, Section 2

 

LAW REVIEW CITATIONS: 51 OLR 32, 33 (1971); 67 OLR 109 (1988); 40 WLR 225 (2004)

 

Art. IX, Section 3

 

ATTY. GEN. OPINIONS: Constitutionality of crediting to the county general fund interest earned from investment of unsegregated money held by county treasurer, (1971) Vol 35, p 1020; constitutional limitation on “license” tax by mass transit district, (1974) Vol 37, p 229; distribution of proceeds from exploration lease, (1975) Vol 37, p 349; use and distribution of State Highway Fund, (1975) Vol 37, p 599; use of highway funds to assist Tri-Met, (1975) Vol 37, p 958; constitutionality of use of highway use tax or vehicle fuel tax revenues for emergency purposes, (1976) Vol 37, p 1194; transfer of funds from Motor Vehicles Division to Energy Department, (1976) Vol 38, p 348; use of highway funds for construction of “park and ride” station, (1978) Vol 38, p 1746; Motor Vehicles Division use of gas and fuel tax funds to provide voter registration material and assistance in MVD field offices, (1979) Vol 39, p 492; transfer of unrefunded marine fuel taxes to Marine Board, (1979) Vol 39, p 637

 

LAW REVIEW CITATIONS: 4 EL 370 (1974)

 

Art. IX, Section 3a

 

NOTES OF DECISIONS

 

      Expenditures in agreement by which county provided funds to city for construction of airport main public parking lot and covered walkways were unauthorized under this section. Rogers v. Lane Co., 91 Or App 579, 756 P2d 665 (1988)

 

      Underground storage tank assessment in [former] ORS 319.025 is tax on motor vehicle fuel. Automobile Club v. State of Oregon, 314 Or 479, 840 P2d 674 (1992)

 

      ORS 466.791 (Underground Storage Tank Correction Fund) expenditures from tax levied under [former] ORS 319.025 (Tank Assessment) is not constitutional. Automobile Club v. State of Oregon, 314 Or 479, 840 P2d 674 (1992)

 

      Emission fee imposed under [former] ORS 468A.435 is “tax or excise levied on ownership, operation or use of motor vehicles.” Automobile Club v. State of Oregon, 314 Or 479, 840 P2d 674 (1992)

 

      ORS 465.127, allowing expenditure of petroleum products tax receipts for responding to hazardous material spills on roads, is unconstitutional. Carmichael Columbia Oil, Inc. v. Dept. of Rev., 13 OTR 97 (1994)

 

      Limitation on use of highway funds focuses on connection between process or activity and public highway, not connection between process or activity and promotion of vehicular traffic. Oregon Telecommunications Assn. v. ODOT, 341 Or 418, 144 P3d 935 (2006)

 

ATTY. GEN. OPINIONS: Use of motor vehicle and highway fuel taxes for policing of public highways and parks, recreational, historic or scenic purposes, (1977) Vol 38, p 800; use of money set aside for footpaths and bicycle trails for construction of bicycle-pedestrian bridge over river, (1981) Vol 41, p 545; separation of special license plate fees from State Highway Fund, (1997) Vol 48, p 345; highway funds not available for recording commercial driving record information, (2000) Vol 49, p 230

 

LAW REVIEW CITATIONS: 67 OLR 115 (1988)

 

Art. IX, Section 3b

 

NOTES OF DECISIONS

 

      Oregon’s submerged and submersible lands were not “granted” to Oregon by the federal government, but were vested in the state as result of equal footing doctrine, therefore, proceeds of leased submerged and submersible lands were not dedicated to the Common School Fund by the Constitution and are taxable under ORS 307.110. Johnson v. Dept. of Revenue, 9 OTR 11 (1981), aff’d 292 Or 373, 639 P2d 128 (1982)

 

      Assessments computed on energy-resources-sold basis under [former] ORS 469.420 are tax measured by sale of natural gas and oil, and tax is subject to section 2 (1)(g), Article VIII, and this section and therefore dedicated to Common School Fund and not available to Department of Energy. Northwest Natural Gas Co. v. Frank, 293 Or 374, 648 P2d 1284 (1982)

 

Art. IX, Section 4

 

ATTY. GEN. OPINIONS: Constitutionality of the Emergency Board, (1974) Vol 37, p 130; repayment of War Veterans Fund moneys transferred to General Fund, (1988) Vol 46, p 78, clarified (1989) Vol. 46, p 245

 

LAW REVIEW CITATIONS: 67 OLR 109 (1988); 70 OLR 257 (1991); 40 WLR 225 (2004); 87 OLR 717 (2008)

 

Art. IX, Section 5

 

LAW REVIEW CITATIONS: 40 WLR 225 (2004)

 

Art. IX, Section 6

 

LAW REVIEW CITATIONS: 40 WLR 225 (2004)

 

Art. IX, Section 7

 

LAW REVIEW CITATIONS: 40 WLR 225 (2004)

 

Art. IX, Section 8

 

LAW REVIEW CITATIONS: 40 WLR 225 (2004)

 

Art. IX, Section 10

 

NOTES OF DECISIONS

 

      Termination of state pension contribution reduces benefit to state employees of partially performed employment contracts in violation of Contracts Clause of United States Constitution and is void. Oregon State Police Officers’ Assn. v. State of Oregon, 323 Or 356, 918 P2d 765 (1996); Re v. Oregon Public Employees Retirement System, 256 Or App 52, 301 P3d 932 (2013), Sup Ct review denied

 

ATTY. GEN. OPINIONS: Limitations on contracts affecting pension contribution, sick pay cash out and minimum account earnings, (1994) Vol 47, p 176

 

Art. IX, Section 11

 

NOTES OF DECISIONS

 

      Termination of guaranteed rate of return on pension contribution reduces benefit to state employees of partially performed employment contracts in violation of Contracts Clause of United States Constitution and is void. Oregon State Police Officers’ Assn. v. State of Oregon, 323 Or 356, 918 P2d 765 (1996); Re v. Oregon Public Employees Retirement System, 256 Or App 52, 301 P3d 932 (2013), Sup Ct review denied

 

ATTY. GEN. OPINIONS: Limitations on contracts affecting pension contribution, sick pay cash out and minimum account earnings, (1994) Vol 47, p 176

 

Art. IX, Section 12

 

NOTES OF DECISIONS

 

      Termination of pension credit for sick leave reduces benefit to state employees of partially performed employment contracts in violation of Contracts Clause of United States Constitution and is void. Oregon State Police Officers’ Assn. v. State of Oregon, 323 Or 356, 918 P2d 765 (1996); Re v. Oregon Public Employees Retirement System, 256 Or App 52, 301 P3d 932 (2013), Sup Ct review denied

 

Art. IX, Section 13

 

NOTES OF DECISIONS

 

      Referenced sections are void in entirety with no part subject to being saved. Oregon State Police Officers’ Assn. v. State of Oregon, 323 Or 356, 918 P2d 765 (1996)